ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Fixed expenses generally cost the same amount each month (such as rent, mortgage payments, or car payments), while variable expenses change from month to month (dining out, medical expenses, groceries, or anything you buy from a store).

Detailed explanation-2: -Examples of Fixed Expenses Mortgage or rent payments. Loan payments, such as auto loans or student loans. Insurance premiums, such as for car insurance and homeowners insurance. Property taxes.

Detailed explanation-3: -Fixed expenses are difficult to reduce because they stay the same each month, usually by contract. Rent or a mortgage payment will not change, no matter how little income you have or, in a business, how many sales are made.

Detailed explanation-4: -Fixed expenses are expenses that do not change in conjunction with the level of activity. These expenses tend to be quite stable, not changing much from month to month. Examples of fixed expenses are advertising, dues, equipment leases, insurance, and rent.